# In the matter of Bank of India Vs. Ginni Devi, CP (IB) No. 218 (PB)/2021

> NCLT judgment dated 2021-09-30. Citation: TCN-2021-NCLT-00935. The case involves an application filed by Bank of India, the financial creditor, under Section…

- **Court:** NCLT
- **Order date:** 30 Sept 2021
- **Citation:** TCN-2021-NCLT-00935
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bank-of-india-vs-ginni-devi-cp-eafa567e

## Summary

### Background

The case involves an application filed by Bank of India, the financial creditor, under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Ms. Ginni Devi, the personal guarantor to the corporate debtor, M/s. Shree Raj Mahal Jewellers Private Limited. The application seeks to initiate the Insolvency Resolution Process against the personal guarantor due to an outstanding debt of Rs. 113.83 crores as of 31.01.2021. The corporate debtor had availed loan from a consortium of lenders, including Bank of India, but failed to maintain financial discipline, leading to its account being declared NPA. A Section 7 application was previously filed against the corporate debtor, resulting in the initiation of CIRP proceedings and subsequent liquidation.

## Facts

Bank of India, acting as the financial creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Ms. Ginni Devi, who is the personal guarantor for the corporate debtor, M/s. Shree Raj Mahal Jewellers Private Limited. The corporate debtor had availed a loan from a consortium of lenders, including Bank of India, Federal Bank, Central Bank of India, and Corporation Bank, under a Working Capital Consortium Agreement. The corporate debtor failed to maintain financial discipline, leading to its account being declared a Non-Performing Asset (NPA) on 30.06.20215. A Section 7 application was filed against the corporate debtor, resulting in the initiation of Corporate Insolvency Resolution Process (CIRP). Subsequently, due to the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor, Bank of India, under Section 95 of the …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the

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**Reasoning:** The court considered the application filed by the Financial Creditor, the outstanding

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**Interpretation:** Section 95 of the IBC allows a financial creditor to file an application for

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**Application:** The Financial Creditor, Bank of India, filed the application under Section 95

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## Parties

- **Judges:** Shri. Bhaskara…; SHRI. HEMANT…
- **Appellants:** Bank of…
- **Respondents:** M/s. Shree Raj…; Ginni…

## Timeline

- **2018-01-01 — Section 7 Application…**: A section 7 application under the I&B Code, 2016, was filed against the Corporate Debtor…
- **2019-04-24 — Section 7 Application…**: The Hon'ble Tribunal admitted the Section 7 application filed against the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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